Kuwait: The Ministry of Interior, in coordination with other government entities, has issued a stern warning against unlicensed cryptocurrency mining, revealing that more than 1,000 sites across the country have been discovered engaging in the activity. These operations have been found to consume electricity at levels 5 to 20 times higher than that of an average household, putting significant strain on the national power grid.
The Ministry of Electricity, Water, and Renewable Energy confirmed that these mining activities are placing heavy loads on the electricity infrastructure, increasing the risk of widespread power outages that could affect residential, commercial, and essential service areas.
The Ministry of Interior emphasized that cryptocurrency mining without proper authorization is a clear violation of multiple Kuwaiti laws, including the Industrial Law (Law No. 56 of 1996), the Penal Code (Law No. 16 of 1960 as amended by Law No. 31 of 1970), the Communications and Information Technology Law (Law No. 37 of 2014), and the Kuwait Municipality Law (Law No. 33 of 2016).
Authorities noted that some individuals have attempted to mask their activities by disconnecting high-energy appliances, such as air conditioning units, to avoid detection. This tactic has nonetheless led to unusual electricity usage patterns, prompting investigations and subsequent site discoveries.
Cryptocurrency mining, which involves complex decryption processes requiring specialized equipment and continuous 24/7 operation, consumes vast amounts of electricity. The joint effort to monitor and crack down on unauthorized mining includes cooperation between the Ministries of Interior and Electricity, the Communications and IT Regulatory Authority, the Public Authority for Industry, and the Kuwait Municipality.
All violators have been urged to rectify their status immediately, or face legal consequences, including referrals to investigative authorities for further action.
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